The Potters have made an encouraging start to life under Hughes, not only enjoying good results but earning praise for their attractive play.
They were particularly impressive in last week's goalless draw against Manchester City in the Barclays Premier League - a game in which they created the better chances.
They face the next test of their rebirth under Hughes - who is keen to banish the physical, direct reputation of old - as they travel to the Emirates Stadium to face the in-form Gunners on Sunday.
Hughes said: "You can't question the quality and ability of Arsenal - they are playing well and winning games.
"We are playing exceptionally well too, and in my opinion it is as good a time as any to go down there and play them.
"In terms of how we are playing it is probably better than I thought they were possibly capable of.
"The exciting thing for me is that I feel there is more to come.
"Everything they have been asked they have come up with answers so far, and long may that continue.
"We are playing some good stuff and creating a lot of chances.
"We played really well last week and we deserved to win.
"Manchester City weren't at their best, but that was perhaps a consequence of coming up against ourselves, who put in a fantastic display."
Arsenal have certainly caught the eye this term, bouncing back from their opening-day loss to Aston Villa with a run of six successive wins in all competitions.
The mood in the Gunners' camp, after a summer of transfer market frustration, has also been boosted following the club record signing of £42.5million world star Mesut Ozil on deadline day earlier this month.
Hughes said: "Lots of clubs invest huge amounts of money, and people will be thinking that by bringing Ozil in Arsenal will be challenging this year.
"They have made a good start, whereas other teams maybe haven't started so well.
"It will be a long season though, but if Arsenal can sustain their form they will be up there for sure.
"Of course they will ask questions of us, so we will need to stand firm and limit them to infrequent opportunities."
Hughes is confident his side can trouble Arsene Wenger's men.
Stoke are just two points below the London side after collecting seven from their opening four games.
"We have got to be clear in our own minds about what we want to do on Sunday," said Hughes, whose confident start at the Britannia Stadium has suggested he can win over sceptical fans.
"Individually players have to take responsibility for their own roles, and if they are able to do that and do the things that we know we are capable of then we can go there and win the game."
After winning three games in succession in all competitions, Hughes named an unchanged side against Manchester City.
But he has other options at hand, not least deadline day signings Stephen Ireland and Marko Arnautovic, who made their debuts off the bench last week.
Austria forward Arnautovic looked lively in his brief appearance.
Ireland, 27, who has joined on a season-long loan, is hoping to revive his career under his former Manchester City boss after falling out of favour at Aston Villa.
Hughes said: "In terms of selection, there are players pushing for a start.
"Stephen Ireland is in my thoughts because I thought he did well when he came on last weekend, but maybe he is still a little bit behind one or two of the other lads.
"The intensity levels are there now though, and he is looking a better player with every day that passes us by."
Midfielder Charlie Adam has been Stoke's only fitness concern with a gashed leg but is expected to be fit.